Friday, January 22, 2021

Smoke And Mirrors, Literally

 RLX Technologies, a Chinese vaping company just did an IPO to raise $1.4 billion. That’s a lot of money for smoke, but that’s not all: it listed on the NYSE and on the first day of trading its shares jumped 133% from $12 to $28 giving RLX a market cap of $44 billion.  That’s 1,900 times annual earnings... for be clear: that’s one thousand nine hundred times. Oh, and a mere 97 times revenue.

Does every man, woman and child on Earth vape?? I guess they must!!

You know, Tulipmania was sane by this measure...


  1. Insane. Must be the zero yields everywhere, for a very long time, now chasing stocks for returns.